Jeffrey M. Rosenblum, P.C.
A Fresh Start

Long Island Bankruptcy Law Blog

The ins and outs of a typical debt repayment plan

If you've built up debt during your lifetime, you know how difficult it can be to work your way out of it no matter how hard you try. Many people in debt find themselves filing for bankruptcy. This is not the end of the road for your life, so don't worry that it is. When you file for bankruptcy, you will create a repayment plan. Here's some information about that plan.

As you work to create a repayment plan with your creditors, the first thing you will need to do is establish the amount. This can be a very difficult part of the plan because the creditor will want to get as much money back in as little time as possible and debtors will want to complete the plan as quickly as possible. Both of these scenarios are bad for the debtor because they could lead the debtor to agreeing to a plan he or she cannot afford.

Are you a victim of illegal debt collection efforts?

Dealing with overwhelming debt can have many negative consequences on your life. Besides the stress that comes with missing payments and knowledge that you cannot hope to catch up on your own, you may have to deal with phone calls and other forms of contact from creditors and debt collectors.

If you are dealing with constant contact from creditors and their attempts to get money from you are having a significantly negative impact on your life, you could be a victim of creditor harassment. Certain types of creditor and debt collector behavior are illegal, and as a consumer, you have the right to fight it and work for a better financial future.

Gordmans department store bankruptcy comes to an end

The bankruptcy filing for Gordmans department store has finally come to an end. The store is based in Omaha and it had a liquidation plan approved by a bankruptcy court. The approval for liquidation occurred just less than one year since the company entered into the process. The company had to enter bankruptcy because of high dividend payments to shareholders and beyond lackluster sales.

Creditors of Gordmans, which held unsecured debt, received pennies on the dollar from the company in the liquidation plan. The investors of the company, which held stock, received nothing in liquidation. Once this was approved, the company ceased to exist, but its store in Council Bluffs remained open because it is under new ownership.

Is bankruptcy the best option for seniors struggling with debt?

Debt is an issue that plagues millions of people across the country. Managing money is a skill that comes easy to some and not so easy for others. Even senior citizens can experience debt. Some go into debt late in life even after never having debt earlier in life. This typically happens after the senior has entered into retirement and a steady, healthy income has stopped. So, is bankruptcy the best option for seniors who are struggling with debt?

There are typically two options on the table for seniors who are facing debt after retirement: Use retirement assets to pay down the debt or file for bankruptcy. The better of the two options is to file for bankruptcy. This is especially true if the senior has already paid off the mortgage on his or her home. The reason for this is that they will experience less of an impact on having a poor credit score.

How to determine if you have too much debt

There are times in life where debt is perfectly fine to have. There are times in life where debt is not a good idea. One of those is credit card debt. It's not bad to have a small balance on your credit card, but having a card with a balance of more than a couple thousand dollars is just not good. Here's how you can determine if you have too much debt to your name.

If you are making just the monthly minimum payments on your credit cards, you have too much debt. The same can be said if you cannot pay off all of your credit card debt within one year. If you use one credit card to pay down the debt on another, you have too much debt. If you use credit cards to pay for gas, food and other necessities, you have too much debt.

How to climb out of debt as a small business

Owning a small business is exciting, but it can also be very stressful, especially if the company is struggling with debt. Small business debt can be debilitating. It can be so overwhelming that the business has to close its doors after filing for bankruptcy. However, there are ways to keep the small business up and running by climbing out of debt.

The first thing you can do is revisit the budget of your business. If the debt keeps accruing, it likely means that the budget is not working. Taking a look at the budget will help you fight the debt issue. You will need to create a new budget that takes the current debt into consideration, which means lowering it considerably.

3 options for dealing with debt you may want to avoid

Most New York residents have likely heard some version of the phrase "money makes the world go 'round." While many people -- including yourself -- may agree with this sentiment, you in particular may have a disdain for this widely accepted notion due to your financial problems. Though many people face some sort of debt during their lives, your liabilities may have become considerably overwhelming.

Because debt issues can often cause stress, anxiety and even contribute to physical ailments, you certainly want to find the best way to manage your outstanding balances. However, certain options that may seem to have quick benefits may not actually offer the best routes for handling your financial situation. Therefore, you may want to avoid the following avenues.

New approach to bankruptcy keeping companies alive

Since 2014, a total of 19 brick-and-mortar retail companies have shuttered their doors due to bankruptcy. As of late, more companies have been able to remain in business and keep their employees even after exiting bankruptcy. This is due in large part to a new method that has involved help from landlords, creditors and vendors.

Up until this year, retailers like The Sports Authority, American Apparel and The Limited all shuttered their doors once their bankruptcy was complete. Instead of taking on expensive leases and struggling businesses, investors decided to shutter these companies and instead attempt to rebrand them online.

How can seniors manage debt?

Debt is not something that simply goes away with age. Wouldn't it be nice though if it did? Because debt is an issue that many people will struggle with throughout their lives, we will take a look at how seniors can manage debt late in life. It's quite a simple process really, but it's an important one to learn.

Your first option is to put together a debt repayment plan. You can do this one of two ways: Repay the debt with the highest interest rate first and make minimum payments on the rest of your debt or repay the debt with the lowest interest rate first as you make minimum payments on the rest of your debt.

Common signs that bankruptcy might be in your future

Bankruptcy is a personal issue that sneaks up on quite a few people. Even those who have their finger on the pulse of their finances might still be surprised by the realization that it's time to file. Then there are those who know they are headed in the wrong direction but can't seem to climb out of their debt issues. Here are some signs that you could be headed for bankruptcy.

If you carry a high balance on even just one credit card, this is a sign that bankruptcy might be in your future. It is recommended that you do not carry a credit balance of more than 10 percent of your annual income.